After a break of yesterday’s low and some consolidation
eur/usd formed a morning star pattern and is rising now. I may remind you that
it is a bullish candle pattern formation that indicates bullish pressure and
may serve as a signal to go long.
The pattern should be taken even more seriously as
it formed right on 200 ema on 1 hour. You see, we wait for more points of
confluence in order to take a signal. Just the mere fact that it is on 200 ema
or sma is not enough to go long or short. You need more factors and the second
one is morning start candle pattern.
The first level of resistance is even number of
1.1100 that coincides with 200 sma on 15 minute chart. The next much stronger
resistance level is yesterday’s high: 1.1125 level.
On the other hand we should remember that the pair
has been going down since last Thursday when it formed a peak at 1.1213 level.
We should also remember that long term trend has
been down for a year now. Intermediate trend is neutral and short term trend is
down. Yet day traders can trade both directions when key points of intra day
support or resistance are reached.
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